Learn / Buy and sell signals
Long Tail Down
A reversal after a very long column of O's.
The Long Tail Down is a reversal pattern that appears after a very long, uninterrupted column of O's. When a stock falls 20 boxes or more without a single 3-box rebound, the first reversal up is worth noticing.
The rule
Long Tail Down: a column of at least 20 O's, followed by a reversal up into a column of X's.
Why it matters
A 20-box decline with no 3-box bounce means sellers were in total control for a long time. That kind of one-way selling often exhausts itself. The first reversal up is the first sign that buyers are finally willing to step in.
Using it carefully
- The reversal is not a buy signal on its own. Price is still far below any meaningful resistance, and the trend is still down.
- It's best treated as a first opportunity for a rebound trade or as the start of a base. A subsequent Double Top buy signal adds confirmation.
- The low of the long O column is the obvious line in the sand. A new low below it means the selling hasn't finished.
For education only. Nothing here is investment advice or a recommendation to buy or sell any security.